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Tuesday, September 7, 2010

Tuesday after the close updates!!!

Score one for the bears, the SPX closed beneath both the 20, and 50 week moving averages, which are both now acting as resistance.
The bears need that trendline on the RSI to get broke to the downside just as it did back in May '08 at the beginning of the big crash, notice that the RSI is at 50 points, the same position as it was back when the large sell-off of '08 occurred. The STO is not as bear friendly, still up-trending with room to run before reaching over-bought conditions.
The Daily chart has the 200 day MA acting as resistance up at 1115.50, and the 50 and 20 day MA as support at 1082.19 and 1076.91, respectively.

After the close, The trendline coming down from the high back from mid-April is acting as stiff resistance for the SPX and as long as this continues the optional gray count is still on the table with the possibility that a top was already put in and the SPX is in its early stages of a new sell-off. For the short-term bullish option, this also can be counted as a period of consolidation in a 4th wave before the SPX takes out that trendline to the upside.
There were no major higher highs, nor lower lows made today, only a minor lower low. Over-all the short-term trend remains bullish, and the longer-term trend bearish until 1131 is taken-out. The Trend Finder has been on the verge of going to 25% bullish all day, with a couple of indicators dancing back and forth in the neutral zone not quite giving a strong sell signal that would effect the larger readings.
Breadth for the day closed at 2.76:1, decliners, on very light voulme which would be consistent with a day of 4th wave consolidation, how-ever if breadth increases in the morning with a gap down on strong sell volume the short-term uptrend would be in serious trouble.
Side-note, the VIX did close above the 200 day MA, you can see the chart in the post below along with some intra-day charts.
More charts coming later today as they are up-dated.

1 comment:

  1. hello
    this was the first resistance is causing some problems for the bulls

    analysis on this blog:
    www.sp500analise.blogspot.com

    ReplyDelete